TLDR: Despite a 57% monthly decline in overall Middle East and North Africa (MENA) startup funding to $337.5 million in August 2025, Saudi Arabia emerged as the leading investment hub for the second consecutive month, attracting $166 million across 19 deals. The Kingdom’s strong performance, alongside the UAE, highlights a recalibration in the market with a focus on revenue-driven businesses and later-stage investments. Notably, female-led ventures in Saudi Arabia saw a significant boost in funding, and an AI-powered credit infrastructure platform, Orbii, secured $3.6 million in seed funding.
Startup funding across the Middle East and North Africa (MENA) region experienced a notable recalibration in August 2025, with total investments reaching $337.5 million across 47 deals. This figure represents a 57% decrease from July’s record-breaking $783 million, yet it remains a robust 74% higher than the funding secured in August 2024, indicating sustained long-term growth momentum in the regional ecosystem.
For the second consecutive month, Saudi Arabia led the MENA region in startup funding, attracting a substantial $166 million across 19 deals. The United Arab Emirates (UAE) followed closely, with 11 startups raising $154 million. Egypt also contributed to the regional activity, securing $14.7 million across eight deals.
The investment landscape in August saw a shift in sectoral strength. Proptech emerged as a top-funded sector, drawing $96 million. Fintech rebounded significantly, securing $68.3 million across five transactions, signaling a recovery in the financial technology space. Construction technology also performed strongly, buoyed by a notable $50 million round, including a significant raise by MYCRANE. The gaming sector, particularly in Saudi Arabia, showed increasing ambition, with Saudi investors contributing $12.6 million to gaming startups.
Later-stage investments dominated the funding activity, reflecting a trend towards more mature, revenue-driven businesses. Series B rounds accounted for $112 million across three deals, while Series A rounds raised $82 million, also across three deals. Debt financing played a crucial role, contributing $60 million, or 18% of the total funding. In contrast, early-stage startups secured a comparatively modest $22 million across 31 deals.
In terms of business models, business-to-business (B2B) startups attracted the largest share of capital, with $180 million invested across 32 deals. Business-to-consumer (B2C) ventures followed, securing $116.9 million from nine transactions, while hybrid models accounted for the remainder. This shift underscores investors’ preference for startups with clearer monetization pathways and an enterprise focus.
While funding remained largely male-dominated, with male-led startups securing $263.5 million across 41 deals, female-led ventures saw a notable increase. These startups raised $72.3 million across two deals, both involving Saudi-based companies, Gathern and Phys. Mixed-gender founding teams attracted $1.6 million.
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Among the notable deals, Saudi-based credit infrastructure platform Orbii successfully secured $3.6 million in seed funding. This investment, led by Prosus Ventures with participation from VentureSouq, DASH Ventures, Taz Investments, and Sanabil 500, will enable Orbii to expand its operations across the MENA region. Orbii is developing an artificial intelligence-powered platform designed to help banks, fintechs, and B2B marketplaces deliver faster and more accurate SME lending solutions. Additionally, Saudi construction-tech startup Fitting raised $500,000 in a pre-seed round, supporting its technology development and team expansion in the Kingdom’s transforming construction sector.
